Sheffield Council should balance books by making cuts, hiking tax and raising charges

At next week’s Strategy and Resources Policy Committee meeting (February 21), members will hear about the council’s plans for its revenue budget and capital programme for the coming financial year.

According to a report published on the council’s website, Sheffield Council is forecasting ‘pressures’ of £79million for committees’ budgets – of which, £49m relate to social care services.

The report said: “These pressures result from rising demand for services but also significant increases in contract and price inflation due to the current economic backdrop.”

However, the council is confident that due to savings and increases in business rates income and associated grants, uplifts to sales fees and charges where appropriate, additional funding from the government (mainly ringfenced to social care) alongside the increase of council tax by 4.99 per cent, a balanced budget could be set.

The increase in council tax alone, the highest rise possible without a referendum, will deliver approximately £16m for Sheffield, with most homes facing an increase of £1.17p per week, the report added.

In an interview just before Christmas, Cllr Tom Hunt, the leader of the council, told the Local Democracy Reporting Service that Sheffield was managing its budget “carefully, prudently and responsibly” and it’s not in section 114 – effective bankruptcy – territory despite significant challenges.

He said: “We’re not in that (section 114) territory. However, there can be no complacency. We’re facing significant challenges – inflation is still an issue for us, demand and prices are rising, and support from the central government isn’t there…

“But I can reassure residents of Sheffield that we’re not in the territory other councils (that have or are about to issue a section 114 and effective bankruptcy) are in.”

He then added (if it won the next general election) a Labour government would offer a sought-after multi-year deal so local authorities could plan ahead.

Cllr Hunt then added there was a warning from economic forecasters that the country may go back into recession – and today (February 15) it has been revealed that the country tipped, in fact, into recession.

The full council is to meet on March 6 to consider the revenue budget for 2024/25 and to determine the council tax for that year.